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Best Ways to Minimize Your Tax Liability for FY 2021-22

Best Ways to Minimize Your Tax Liability for FY 2021-22

It’s March Ending! 

FY 2021-22 is about to get over. It’s high time you review your income and take steps to minimize your tax liability. If you want to make any investment, 31st March 2022 is the last date. Following are the ways in which you can minimize your tax liability before 31st March:

  • Through Section 80C / 80CCD
  • Payment of Health Insurance Premium
  • Opt for National Pension Scheme 
  • Donations under section 80G
  • Any other investment

The smart way to save tax through shares

You can save tax using your shares through the following method:

  • In case, you have shares in your portfolio that are currently in loss, then you can sell off those shares (before 31st March) and buy them again (if you were intending to hold those shares).
  • In this case, you can book your loss and this will be allowed to be set off against your capital gains income (if shares are held as capital assets).
  • The loss can be a short-term capital loss (if shares are held for less than 12 months) or long-term capital loss (for shares held for more than 12 months).
  • Just remember, a short-term capital loss can be set off against long-term as well as short-term capital gains. Whereas, a long-term capital loss can be set off only against long-term capital gains.

Use Capital Gain Account Scheme

  • If you have received income from the sale of residential house property, then you can reinvest the sale consideration to purchase or construct a new residential house property. This will exempt your income through the sale of your residential house.
  • However, you need to invest the same before 31st March this year.
  • In case you fail to invest – Don’t worry! You can invest in the Capital Gains Account Scheme before filing your income tax return for the Financial Year 2021-22. This will allow you to claim the exemption. 

Remember, 31st March is the last date for all the tax-saving activities. Hurry up and save/ minimize your tax liability! 

In case of any query or to minimize your tax liability, please feel free to contact ASC Group.

 

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